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How to Ensure Customer Satisfaction with Technology in the Warranty Business

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Software development efforts are usually directed at reducing overheads and increasing ROIs, but when technology is used to improve the value chain through better customer satisfaction, the approach required is essentially number driven. The need to improve customer satisfaction can be met if operational complexity was lower and measurability was easier for manufacturing personnel. Technology can make business performance measurable. The improvement brought about by such technology has to be persistently felt across the warranty chain.

The need for measurability

Experience improvement across the value chain occurs as the result of integration and transparency, which can be brought about by a user-friendly and integrated technology. However, without KPIs or measurability in it, personnel will remain in the dark about improvements. Error-free and time-effective processes involving dealers and special-parts suppliers are necessary as well. Manufacturers should detect inefficiencies and production defects, and consequently, make modifications that improve customer experiences.

What are the software requirements?

1.OEMs first need an integrated system in order to obtain relevant data from the value chain. Access to data that lets managers use customer satisfaction as a KPI is only possible when a real-time system involving telematics, simple user interfaces, and the cloud can update the warranty system at the manufacturer’s end.

2.A capable technology must also use warranty data for internal calculations. Warranty intelligence helps identify patterns and leads to higher measurability, easing the process of operational control and performance scoring. When the data is real-time, pre-emptive corrections can lead to long-term profitability and brand value.

3.Warranty spends are contained within appropriate limits as the result of fraud detection. Data intelligence can help detect frauds by identifying customers’ behavior over time, and create transparency between OEMs, dealers, and suppliers on fraud issues.

The need for agile software development

Imitating the dynamism in any given business environment is understandably a difficult challenge in enterprise software development.

IT suites for warranty management should feature user-friendly interfaces, which can be used by OEM personnel without technical expertise. While they should be able to set their warranty rules without the assistance of a software developer, algorithmic changes should be available from a software provider instantly. A capable provider should be able to deploy the changes within days or weeks by the virtue of Software as a Service (SaaS). Similar changes from legacy system providers can take months and overheads easily eat into profits.

A vast scope of improvement lies in warranty intelligence. As your system gathers a massive source of cumulative data, algorithmic refinements can identify profitable distribution points, unproductive policies, scopes of fraud, supplier-recovery risks and let you score them regularly and accurately. Remember, refinement in algorithms helps organizations to improve continuously.

In a nutshell

Your warranty management system must drive your organization towards being better informed, so that you can avoid misunderstandings, take the right decisions, and deploy the right investments after quantifying performances. Moreover, a good software system is one that enables clarity and predictability in the value chain with ease.


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